GROCERY INDUSTRY CONSOLIDATING
By Adnews Staff
The banks are doing it, and now the grocery industry is doing it. Toronto-based Loblaw Cos. Ltd. has bought Provigo Inc. of Montreal in a deal worth $1.67 billion. Under the agreement, Loblaw will continue to use Provigo's store names, as well as the company's head office, board of directors and existing employees. Loblaw's operates 360 company-owned grocery stores and 547 franchised outlets across Canada. Its runs its stores under various names in different regions of the country including Zehrs, Fortino's SuperValu, No Frills, Valu-mart, National Grocers, Atlantic Wholesalers, Kelly, Douglas & Co. and Westfair Foods. Provigo operates stores in Ontario and Quebec under the names Provigo, LOEB, L'Econome, Presto, Maxi and Maxi & Co. It has 239 company-owned stores and 109 franchised outlets.
In addition, Loblaw has made a deal with Metro-Richelieu of Montreal to give Metro the first crack at buying the Loeb stores in Ontario, as well as other assets. The details of this agreement have not been announced. The deal is subject to regulatory approval. Metro-Richelieu is a grocery store chain in Quebec operating stores under such banners as Metro, Marche Richelieu and Super C.